Ad spending has changed, big time. During the pandemic we saw that traditional advertising channel spending dipped 16% globally while digital ad platforms actually grew with a 12% increase compared to the forecasted 9%. While traditional display and video ad spend remained steady, connected TV (CTV) and gaming consoles helped the industry rebound in 2021.
What traditional vs digital global ad spend looks like
Since worldwide digital ad spend is climbing upward, how much has been driven programmatically? Seven out of ten ad dollars across digital platforms is being spent programmatically. Now, let’s break down how that looks for different regions.
Mature markets like the US and EMEA lead the pack with about 85-90% of digital ad spending happening through programmatic channels, while emerging markets like SEA, MENA and ANZ aren’t quite there yet, but are expected to grow significantly over the next few years.
These predictions show a really bright future for programmatic. By 2025, nine out of ten ad dollars globally will be spent programmatically with mature markets like EMEA and the US having an almost 95% programmatic adoption.
How much digital ad spending is being done programmatically?
This impressive growth for the global programmatic industry is expected to keep going at a rate of 12% year-on-year over the next five years. China, India and MENA are driving this growth. So, how much money is going to be spent on programmatic? The US is likely to break the $150 billion mark by 2025 with China coming up close behind.
The growth is not only with traditional programmatic channels, like online display, video and audio but also emerging channels,like CTV and DOOH. The opportunities are massive. Take a look at the US market trends and forecasted spending where you can see CTV as an untapped opportunity.
Digital ad spending across platforms in the US
Digital opportunities are only going to grow with the transition from traditional channels. But marketers should remember that consumers are not only in one place, meaning a cross-channel campaign can really help to reach the right audience. Marketers should also keep in mind privacy-compliant solutions that will drive innovation within the adtech space through AI. This can help with planning, executing, and measuring results from programmatic campaigns.
Why programmatic?
If the market trends didn’t convince you that programmatic is the right choice, then let’s try this!
Do any of these statements align with the goals for your next advertising campaign?
- Increase ad efficiencies for both buyers and sellers
- Optimize and transparent advertising spending
- Ability to optimize and target the right audience in real time
- Proven ability to offer higher ROI
- Leverage unique data sets, both first- and third-party, to build data-driven learning
- Build effective cross-device campaigns
- Reduce campaign launch time
- Collect greater insights to understand customers
- Achieve scale
- Develop capabilities to plan and execute programmatic campaigns in-house
Did you nod your head to any of them? Then you should consider programmatic advertising.
Simply put, it can give you ways to grow your business that you didn’t know existed.
